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Don’t let car Co2 emissions catch you out – The Business Side – Part one

Don’t let car Co2 emissions catch you out – The Business Side – Part one

Businesses can claim tax relief on cars purchased for the purposes of their business, the tax relief available is determined by looking at Co2 emissions.

Both the Co2 thresholds and the rate of tax relief available decreased from 1 April 2013 as follows:

To 31 March 2013:                                        From 1 April 2013

0 – 110g/km  – 100%                                     0 – 95g/km  – 100%
111 – 160g/km – 20%                                     96 – 130g/km – 18%
161g/km plus – 10%                                      131g/km plus – 8%

With manufacturers reducing Co2 emissions all the time, a small tweak to model choice can often result in additional tax relief being available.

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